Financial Planning Surviving a Recession

Are you having trouble surving the recession? There are many ways to survive, but you have to be willing to look at the bigger picture. In order to make it out of the recession with minimal damage to your finances you have to be flexible. When surviving a recession you have to be willing to do things out of your routine. The goal is to survive. There are many ways to survive the recession such as cutting back, letting your credit rating drop, living below your means, delay gratification and etc.

Cutting back

As soon as the recession you should cut back on your expenses regardless of whether you still have your job or not. While having your job and cutting back you can create a bigger cushion in your savings account. Cutting back stretches the amount of money you already have saved. For example, if you saved four months living expenses and you decide to cut back now the four months may stretch to five and a half months simply because you cut back. Cutting back isn’t always a bad thing. There are many people who have cut back and have not gone back to their old lifestyle.

Letting your credit rating drop

Letting your credit rating drop in order to save cash is a smart move. You must make sure you the accounts which fall delinquent are accounts which do not affect your living situation. You should try to make a payment arrangement with the company you owe a debt to otherwise you will find yourself in court. Letting your credit rating drop isn’t as bad as it seems because it can always be repaired. If you are one of those people who try to perfect with your credit score you are still at risk for unexpected events, but at the same time there is nothing wrong trying to be the best with your finances.

Living below your means

Living below your means doesn’t mean you have to give up the things you like it only means you have to find a cheaper solution. If you are willing to give up a reoccurring expense for disposable income you are doing yourself a favor. Living below your means has a bad stigma attached to it. Everyone wants to live like the stars or keep up with the Joneses. Living below your means has plenty of pluses such as room for financial error, money to splurge when you want without feeling guilty, money to take a random vacation and you get the point.

Delay gratification

Financial sacrafice is not easy when you live with people or you are around people with bad spending habits. If you live with people with bad spending habits try to stay out the house as much as possible there are plenty of ways to accomplish things. Technology has made it convienent to work on any project in any location. Delaying gratification has great rewards and will get your through the present recession as well as future recession. Look at this way the people around with the poor habits will be knocking on your door for money and closing the door in their faces is your victory.

Financial planning is something which should be taken lightly. The right plan will get through tough times. Please note I am not a qualified financial expert. Any questions should be brought to a professional. Good luck!